‘UltraTech ineligible to submit a resolution plan for Binani Cement u/s 29A of the IBC’

UltraTech Cement is ineligible to submit a resolution plan for Binani Cement under section 29A of the Insolvency and Bankruptcy Code (IBC), Rajputana Properties Private Limited (RPPL), a subsidiary of Dalmia Bharat, said in a letter to Resolution Profession (RP) and Committee of Creditors (CoC) asking them not to consider the resolution plan submitted by UltraTech Cement.

According to RPPL, UltraTech has been ‘acting jointly and in concert with Binani Industries Limited (BIL), which suffers from disqualification from 29A of the IBC’. Therefore, UltraTech ‘as a person acting jointly and in concert with BIL is also disqualified U/S 29A of the IBC from becoming a resolution applicant. The Hindu has a copy of the letter written by RPPL to the RP and CoC.

Section 29A of the IBC states ‘a person may not be eligible to submit a resolution plan, if such person or any other person acting jointly or in concert with such person suffers from any of the disqualification criteria listed in Section 29A’.

When asked for comments, an Aditya Birla Group spokesperson told The Hindu, “It’s a figment of imagination of those making this claim.”

“If the RP submits any resolution plan of UltraTech before the CoC, the RP may be said to be in breach of the NCLT order and may also be in breach of the Code. Similarly, the CoC may be said to be in breach of their obligations under the Code if the CoC considers any resolution plan by Ultratech,” read the RPPL letter.